Abbott, Hockey lied over SPC workers' deal, says LNP MP

Sharman Stone, the federal Member for the Victorian seat of Murray, says her senior colleagues are using excuses that are "wrong" to justify the decision to reject a bid for $25 million in government assistance from the food processor - which is based in her electorate.

Union conditions of workers have come under fire from the Government for being too extravagant, with pay well above the award.

In an extraordinary outburst, Dr Stone says the leaders of her party are deceiving the public debate.

"It's not the truth. That's right, it's lying," she said.

"The independent panel, their own independent panel, I understand recommended that this industry be supported."